Thanks everyone for contributing. What I have discovered is that the information from infobhan is what has worked for us. We too could get some iphones(2.0) connected to our network via LEAP using WPA Enterprise and some would not. So, after reading infobhan's last post we reset the network connections on all of our iphones tried WPA Enterprise again and everyone of them connected via LEAP.
We did not have to do anything on the Enterprise Server side, only the client side iPhone as shown by infobhan. Note the instructions say to use "WPA Enterprise" not WEP. WEP was the 'work-around' way to do LEAP authentication from OS X Tiger and I believe still works in Leopard (although LEAP is supported now). This is why, as Frank Malloy points out, he can LEAP from his laptop via WEP. We tried WEP to begin with on all of our iPhones assuming it would work like our laptops, it did not.
So Kudos to infobhan!
Thanks to everyone for posting.
(infobhan's instructions)
1) Reset network settings (Settings->General->Reset->Reset Network Settings)
2) Go to WIFI, click other, manually enter SSID and choose WPA enterprise - login when prompted
3) If WiFi icon doesn't appear next to carrier name in the upper left after several seconds, push sleep button.
4) wake from sleep and try again, waiting a minute or so to see if it autoconnects.